We’re ready to call Netflix the winner of this battle of the video war, based on Blockbusters remarkably sad third quarter numbers and the flood of pissed off emails we’ve been getting from Blockbuster’s (former) customers.

According to CNNMoney, Apple may be plotting an iTunes movie rental service that would allow iPod users to rent and watch a movie for 30 days without purchasing the entire film. Rumors place the rental fee at about $2.99.

Netflix is investing in superior customer service to differentiate themselves from Blockbuster as the two rental giants remain locked in a vicious price war. The company has completely shunned email-based support, instead relying on 200 friendly Oregonians to answer calls around the clock. Netflix CSRs, unlike most, are not given target call durations, and are encouraged to “err on the side of generosity” when dispensing compensation. They have one shockingly simple goal: satisfy the customer.

Netflix has dropped the price of their 3 movie at a time service… again, says Consumerist’s sister site Gizmodo. We don’t really know what else to say about it because it was only a few weeks ago that we posted the last Netflix price-cut.

Blockbuster has purchased Movielink, an ailing movie download service cobbled together by film studios to combat online piracy. The deal will give Blockbuster access to movies from Sony, Universal, Paramount, MGM, and Warner Brothers. Netflix’s download service, by contrast, offers a limited selection of mostly older movies. The deal is the latest salvo fired in the consumer-friendly war of the movie rental services. No word yet on how long hackers might take to crack the new download service.

The consumer-friendly price war between Netflix and Blockbuster rages on this week as Netflix cuts the price of its two most popular subscription plans by $1. The cost of Netflix’s 3-DVD plan will drop to $16.99, while the 1-DVD plan will fall to $8.99. The price drops will make Netflix plans $1 cheaper than comparable Blockbuster plans featuring Total Access. Both retailers slashed the price of their 2-DVD options last month to $13.99. The latest move from Netflix is meant to drain much-needed cash from Blockbuster. From the Chicago Tribune:

Stepping up its attack on Netflix also has been hurting Blockbuster, which has had to spend more heavily on DVDs to ensure sure its stores have enough discs to keep up with the additional demand from its roughly 3 million online subscribers. The company lost $49 million in the first quarter.

Netflix has reduced the cost of its 2-DVD plan by $1 to $13.99, matching a move made by Blockbuster earlier this month. Blockbuster had expected to be dancing triumphantly atop the battered and bankrupt corpse of its rival by now, but Netflix’s staying power is causing Blockbuster to re-think its strategy. By the end of the year, Blockbuster will raise the price of its Total Access service, which allows subscribers access to its retail locations.

The company said in the filing that it planned to modify its popular Total Access plan before the end of the year to “strike the appropriate balance between continued subscriber growth and enhanced profitability.”